Downward forces have been rekindled in the AUD/USD market as price action dipped through the 0.6489 price level. The resulting downward correction was initially rapid but seems to have cooled down towards the end of last week’s trading activities. What will the new week bring for this pair? Let’s try to find out.
Key Price Levels:
Resistance Levels: 0.6350, 0.6450, and 0.6550
Support Levels: 0.6332, 0.6300, and 0.6250
Bearish Momentum May Persist in the AUD/USD Market
As earlier noted, the AUD/USD has experienced a sharp downward correction. However, towards the close of the previous week, we could see that bearish momentum cooling down. Nevertheless, price action in this market maintains a bearish appearance.
Trading in this market now occurs below the Bollinger Bands’ middle band. Likewise, the Relative Strength Index (RSI) indicator lines are still falling into the oversold region. Technically, indications arising from this market suggest that bears are still in control of market activities.
AUD/USD Is Resisting Further Price Decline
In the 4-hour market, though bears are still largely favored, it could be seen that bulls are trying to stage a showdown at this point. Here, the ongoing session has appeared, posting minimal profits. As a result, the Moving Average Convergence Divergence (MACD) indicator lines are now trending slightly upward, though below the equilibrium level.
Also, the MACD bar for the previous session appeared pale green above equilibrium; the ongoing session has brought back the solid green appearance, suggesting that upside momentum may be formidable. Nevertheless, it still appears more likely that price activities may reach the 0.6310 mark.
Do you want to take your trading to the next level? Join the best platform for that here.